A. Decisions, Feedback & Information needed by staff
Lowe’s is petitioning for 2 street closures and an alley closure, relating to their development on 1300 South 200 West. They would like to begin construction, and need to close by the end of April. Is the following okay in order to move this petition through the process:
Start advertising for the Public Hearing in the last week of March?
Confirm the Public Hearing date on April 5th, for April 19th?
Have a briefing on April 14th, even though the Planning Commission’s Hearing is April 13th?
Have a Council Public Hearing on April 19th?
Council Members were in favor of the proposed advertising schedule.
B. For Your Information
1) LuAnn Clark, Housing and Neighborhood Development Director, wanted to provide the following information regarding the Milestone Apartments:
As part of the transmittal for the Milestone Apartments the Administration asked that the City Council allow the flexibility to change the term of the loan to a cash flow loan if so required by HUD during the financing of the apartments.
The Milestone is four apartment buildings containing 141 units (Annie Laurie, Los Gables, Lorna Doone and Wilshire Arms). Section 8 contracts that have expired and the project is going through HUD's Mark to Market financial restructuring process. The loan is for $700,000 for 30 years at 1% interest. The average tenant's income is approximately 15% of area median income. Utah Nonprofit is acquiring the project in order to preserve its affordability and through the restructuring process they will secure a 20-year Section 8 project-based contract from HUD. At the September 14th meeting, the Council adopted the resolution allowing the Administration to do so, if required by HUD.
The City Administration received notification from Utah Nonprofit that they have been required to have the City loan become a cash flow loan. Larry Spendlove will be contacting the Attorney for Signet (Signet has a contract with HUD to process these loans in Region 8) and verify the information, as well as get the appropriate language being required.
Because the City loan will now become a cash flow loan, HUD will not allow any payments to be made on the loan until an audit has been completed at the end of each year showing that there is sufficient cash to make the loan payments. HAND has been reassured by Utah Nonprofit that there will be sufficient cash flow to make the yearly payments on this loan.